Crunch Time: Clean Tech Legislation Needs Industry Support
Many in the clean tech industry will be frustrated with recent activity at the Utah legislature questioning the science behind climate change and the need for national legislation putting a true price on carbon emissions.
This frustration shouldn’t stop clean tech industry from getting involved in the legislative process. There are many worthwhile policies being considered that will benefit our industry and out state. These policies have a real chance for success, especially with your support. Legislators listen to business. So please get involved, and thank the sponsors for their foresight and leadership.
Utah Clean Energy, a non-profit advocacy group, has put together a watch list web page of legislation being considered this year. This is a very valuable tool highlighting 15 different pieces of legislation you’ll probably be curious about. In this post, however, I’ll highlight 2 issues that I think should be priorities for the clean tech industry this session.
SB194 – Voluntary financing for clean energy improvements
The number one barrier to small-scale renewable energy and energy efficiency projects are the up-front costs of purchase and installation. Many businesses and residents would love to install solar panels or energy-efficient windows. They just don’t have the cash on hand to pay the upfront investment. This kind of financing solution provides another option (in addition to private loans and Energy Efficient Mortgages) to homeowners and businesses when considering how to finance their projects. SB194 would allow cities and counties to issue bonds to create a financing mechanism that would help residents and businesses finance clean energy and energy efficiency projects. Participation would be completely voluntary, allowing interested home owners and businesses to pay for energy/efficiency projects over time via taxes. And, because municipal governments get far better rates than individuals, cost savings could be significant. This type of financing is already being done around the nation, and has been shown to have dramatic affects on encouraging small-scale projects.
H.B. 145 - Encouraging innovative financing for renewable energy projects
Renewable energy financing can be complicated. But the bottom line is that Utah is missing out on big projects, particularly in the solar industry, because Utah law doesn’t accommodate creative financing being used around the country. Specifically, third-party financing arrangements common elsewhere are problematic to impossible right now in Utah due to current requirements of being reviewed by the Utah Public Service Commission. This bill would allow businesses, schools, local government and others to take advantage of tax incentives and innovative financing for renewable energy projects. It’s a no-brainer, which needs industry support.
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